A vertical in business refers to a vertical market, which is a niche marketplace where suppliers serve a specific business audience within a particular industry. In other words, a vertical market is a customer niche that helps a business focus its products and advertising. Vertical markets are advantageous to businesses because they simplify marketing work and provide targeted insight and specialized services to clients, becoming an integral component of their business over the long term. However, catering to a vertical market can also be disadvantageous because it narrows and limits the number of potential customers. Some characteristics of business verticals include:
- Business verticals don’t traverse within various industries.
- They set out with a mission to amplify their position in a single, particular market.
Examples of business verticals include insurance, banking, hospitals, retail, real estate, government, and more. Verticals can also be subcategorized into narrower niche markets.
